US Debt ceiling of Oct 2017 (and 2013) - breakdown

Lets say this is all just opinion so I don't have to reference everything.

http://www.usdebtclock.org/

In late February 2012, Ben Bernanke, chairman of the U.S. Federal Reserve, popularised the term "fiscal cliff" for the upcoming reduction in the deficit [Not to be mistaken with Debt]. Before the House Financial Services Committee he described that "a massive 'fiscal cliff' of large spending cuts and tax increases" would take place on January 1, 2013.

The Fiscal Cliff of 2013 was to be kicked off by Federal Government shutting-down as a result of no resolution being found in the negotiations between the Republicans and Democrats on whether to increase the overall Debt Limit . Simply put, if the limit on the amount of debt the US government was allowed to borrow was not increased, there would be no further funding to pay for it's public servants, costs, and debt service fees. To address this the Government would have needed to cut over 4 Billion dollars of spending per day (as well as increase taxes) causing a daily loss of about .7% GDP, pushing the US economy into a recession.

Fast Forward to today:

The Congressional Budget Office [last June] narrowed its projections for when Treasury might run short on money if lawmakers don't raise or suspend the country's debt ceiling. The CBO now estimates that Treasury might risk defaulting on some payments in the first half of October or even as early as Mid September. Currently the legal borrowing limit is set at $19.81 Trillion, the US current debt at time of writing is $19.97 Trillion, Treasury has been using special accounting measures to allow the government to continue borrowing as needed but those measures, by the CBO's estimates, will be tapped out between early and mid-October.

Today Trump signalled that he will Veto the spending bill if his border wall is not included in the budgeting. He would also act to remove subsidies for the private insurance markets. This follows a Tweet late in July where the US president also seemingly threatened the insurance industry by withholding Bailouts:

To sum up:

The power of the US nations wealth is unmatched by private industry. If the US president is to gain control over the direction and approvals of that wealth, the power shift for the Trump Administration would be too strong for the democrats to hold against, who need his approval ratings to remain low if they want to have any chance of impeachment after the midterms.

The Democrats will not willingly hand over the control of money and power to the Trump administration, and the Trump Administration surely knows this. We are all bound to this game of Financial Chicken as all but 3 countries pay the US to borrow money (Another article on this later). When the US markets falters it causes uncertainty and volatility in the world markets. As a result Bitcoin, Ether, and other Crypto-Currencies will continue to grow in value over the next few weeks; as will precious metals. Each market correcting whenever it seems the Debt Ceiling debate is moving in the direction of stability, and returning to growth any time it seems to have been shaken.

Do not leave your wealth in nations fiat currencies as they are no longer backed by a tangible item such as gold. There is no anchor to stop rampant inflation by intense multiple duplication of the asset, causing a certainty that nations currencies will always lose value long term.

Prop4Peace